ECON - THEME 1 PPF Flashcards
1
Q
PPF
A
Shows all the possible combination of two goods we can produce using all resources efficiently
2
Q
PPF digram points
A
- on the line = productively efficient
- inside = productively inefficient
- outside = impossible with limited resources
3
Q
straight PPF line
A
- constant opportunity cost
4
Q
curved PPF
A
- increasing opportunity cost
5
Q
PPF shifts outwards
A
- increase in workforce (immigration)
- advancement in technology
5
Q
PPF shift inwards
A
- workforce decrease (emigration)
- war
- recession
